Operating Income
Operating income, also called operating profit, represents the profit a company earns from its core business activities before financing costs and taxes. It is shown as a subtotal on the income statement and is closely related to earnings before interest and taxes (EBIT).
Example: A company reports revenue of $500 million, COGS of $300 million, SG&A of $100 million, and depreciation and amortization of $20 million; operating income is $80 million.
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